XRP Cup-and-Handle Setup Signals Potential $5 Year-End Rally
XRP trades around $2.38, up 4% on the week. Traders have identified a classic cup-and-handle pattern on the 3-day chart. The rounded bottom formed between Jan and Jul 2025. The handle now tests its upper boundary. Traders view this XRP breakout as a key signal for larger gains. A clean XRP breakout above this level could pave the way to a $5 target by year-end.
Indicators reinforce this view. The MACD shows a potential bullish cross. Chart analysts note a consolidation-expansion cycle mirroring past breakouts. On the 4-hour chart, a short-term “As Above, So Below” pattern suggests similar stages of price movement over 89-day periods. Key support lies at $2.30–$2.50. Resistance zones appear at $2.80, $3.00, $3.65, and $4.38 (the 1.414 Fibonacci extension).
Market sentiment remains tied to Bitcoin’s trend. XRP’s support at $2.41 is crucial. A bounce from this level could trigger further gains. Failure to hold may lead to continued range trading. Meanwhile, on-chain data shows XRP’s cumulative volume delta (CVD) turned positive for the first time in months. Such a move preceded a 75% rally in past cycles.
Developments in ETF offerings may also shape the outlook. Canary Capital plans to launch the first US-based spot XRP ETF on Nov 13. This product aims for full asset exposure. Traders will watch how ETF news interacts with technical signals.
In summary, the XRP breakout scenario hinges on key chart levels and ETF catalysts. A successful break above the handle resistance could accelerate a rally toward $5. However, market reaction will depend on Bitcoin’s trend and the ETF launch’s impact.
Bullish
The combination of a classic cup-and-handle pattern and positive on-chain metrics creates a bullish bias. Historically, XRP breakouts after extended consolidations have led to significant rallies—for instance, a post-consolidation surge in 2024 saw XRP gain over 60%. The imminent launch of a US-based spot XRP ETF adds a fundamental catalyst. In the short term, a clean breakout above the handle resistance and a sustained support at $2.41 could trigger stop orders and momentum-driven buying, pushing prices toward $3–$4 levels. Longer term, ETF inflows and renewed institutional interest are likely to sustain upward pressure, especially if Bitcoin maintains a stable or bullish trend. However, failure to hold key supports or a downturn in Bitcoin could lead to range-bound trading. Overall, the convergence of technical setups and ETF news points to a near-term bullish outlook for XRP.